New Mexico State Investment Council (SIC) is investing $300m (€277.4m) in US multifamily assets through a Fairfield Residential strategy.
The sovereign wealth fund disclosed in a meeting document that it has approved a $200m commitment to Fairfield US Multifamily Value-Add Fund IV and placed $100m into a co-investment vehicle associated with the fund.
The investment represents New Mexico SIC’s first investment with Fairfield.
According to the meeting document, California State Teachers’ Retirement System will make a significant commitment to the fund, although the specific amount has not been disclosed.
The Fairfield fund which targets a $1bn fundraise and a hard cap set at $1.2bn, has so far raised $800m. The fund is expected to have a final closing for the fund in January 2025.
Fairfield’s Fund IV targets a net internal rate of return of 13-14% with 55% leverage over a 10-year term. The fund has already invested $327m in 14 investments, with development opportunities capped at 35% of committed capital.
Given current market conditions, Fairfield expects lower development exposure.
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